CITIC Consortium from China owns 51 percent of the industrial zone while the Myanmar government owns 49pc, he said.

The industrial zone will be developed on 2400 acres of land and a high-end housing project will also be constructed across 1235 acres.

The Kyaukphyu SEZ, which is expected to consist of the industrial zone and a deep sea port, will be developed across 4300 acres of land in total.

Development will be led by China’s CITIC Consortium and a total of 42 private Myanmar companies under Myanmar Kyaukphyu Special Economic Zone Holding Public Co, said U Aung Htoo.

Myanmar will hold a 30pc stake in the SEZ, which will be developed in phases, while CITIC Consortium will invest 70pc.

U Aung Htoo added that negotiations are now being held to start implementation of the first phase at $1.3 billion. This follows a concession agreement and shareholders’ agreement for the deep-sea port between the two countries during President Xi Jinping’s visit to Nay Pyi Taw last month.

Tenders will be called to carry out social and environmental assessments and geological surveys as part of the development process.

Development of the Kyaukphyu port will enhance China’s presence in the Indian Ocean, allowing its oil imports to bypass the Strait of Malacca.

The SEZ is an important asset in the China-Myanmar Economic Corridor, which is part of China’s Belt and Road Initiative, which spans several countries in Asia. It will also be an important connecting point for the high-speed Kunming-Muse-Mandalay-Kyaukphyu railway project. – Translated